Amigo loans

[Deleted User]

Pardon? .

Arleen

IAmWales wrote: »

The case was heard at the County Court so does not form a precedent for other cases.

It does create a precedent, ever court case does, though it's limited to the same or lower courts in the hierarchy. And this case is unlikely to apply to other people anyway as it dealt with a very particular set of circumstances that will very rarely repeat itself.

bolton_joe

Only needed to borrow for a few months so wasn't that expensive and needed the car for a new job!

System

bolton_joe wrote: »

Only needed to borrow for a few months so wasn't that expensive and needed the car for a new job!

Actually it was expensive, its just that a) you don't realise it yet, and b) it won't be Amigo who you end up paying the cost of the loan to.

The cost will be revealed to you the next time you apply for a loan with an Amigo Loan still showing on your credit record. The APR you will be offered will be worse than if you had no sub-prime "lender of last resort" or pay day loan company on it. So it will be expensive and the cost will be in the extra interest you end up paying the new loan company in the next few years.

SnowTiger

Tarambor wrote: »

Actually it was expensive, its just that a) you don't realise it yet, and b) it won't be Amigo who you end up paying the cost of the loan to.

The cost will be revealed to you the next time you apply for a loan with an Amigo Loan still showing on your credit record. The APR you will be offered will be worse than if you had no sub-prime "lender of last resort" or pay day loan company on it. So it will be expensive and the cost will be in the extra interest you end up paying the new loan company in the next few years.

Potential new lenders won't know the loan was from Amiga Loans, but they would see the high APR.

That may not be (much of) a negative because the loan was paid off in full within a few months. Lenders might see that as a positive.

[Deleted User]

Lenders won't see either the provider or the rate.